Payroll Glossary - H
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HCE: Highly Compensated Employee.
Health Insurance Portability and Accountability Act (HIPAA): Law passed in 1996 restricting the right of group health plans to limit participation by newly hired employees and their dependents because of preexisting medical conditions.
Health Reimbursement Arrangement (HRA): An employer-funded arrangement under which the employer reimburses an employee and the employee's spouse and dependents for medical care expenses up to a maximum dollar amount for the coverage period.
Health Savings Account (HSA): Tax-exempt trusts or custodial accounts created exclusively to pay for the qualified medical expenses of the account holder (e.g., employee) and his or her spouse and dependents.
HI: Hospital Insurance (the Medicare component of FICA).
High-Low Substantiation Method: A safe-harbor method (deemed substantiation) for reimbursing lodging, meal, and incidental expenses incurred by an employee who is traveling overnight on the employer's business.
Highly Compensated Employee (HCE): In the context of certain fringe benefit plans, an employee who is an owner or officer of a business or whose salary exceeds a certain amount (indexed each year for inflation). Many benefits offered by employers do not qualify for favorable tax treatment if they dis- criminate in favor of highly compensated employees. And employers may also be restricted in their use of safe-harbor valuations of benefits provided to such employees.
HIPAA: Health Insurance Portability and Accountability Act.
Housing Allowance: Payment made to a United States citizen or resident alien working abroad to make up the added cost of obtaining reasonable living quarters in a foreign country.
HRA: Health Reimbursement Arrangement.
HRIS: Human Resource Information System.
HRMS: Human Resource Management System.
HSA: Health Savings Account